Ford Goes All In on Bronco With Massive Portfolio Refresh Planned

Ford Motor Company (NYSE: F) has always had an American favorite in its Bronco SUV, and now the Detroit automaker is expanding the product in a couple of unique ways.

This is a part of a bigger plan as the company continues to adjust from its $19.5 billion charge and reversal of electric vehicle plans. There have already been casualties to the strategic adjustment, including the canceling of the F-150 Lightning, though it will return as an extended-range option, and another next-generation full-size electric pickup.

Here's exactly what Ford is planning with its upcoming portfolio refresh, product blitz, and why it matters for investors.

Bronco pickup

Perhaps taken straight from a Bronco fan page, Ford is expected to add a pickup version of its popular SUV. The plan first calls for a Bronco hybrid due in 2027, followed by the Bronco-based pickup toward the end of this decade. In another unique move adding to the Bronco-as-a-sub-brand, Ford's luxury brand Lincoln plans to build a Bronco-based off-roader in a move that dealers should welcome after its product lineup dwindled down to only three vehicles.

Lincoln has always offered the company upside as luxury vehicle sales are significantly more profitable than mainstream vehicles. Despite its potential and upside, Lincoln has never gained the traction investors hoped and has remained an afterthought in recent years.

Ford Bronco. Image source: Ford Motor Company.

The Bronco is not the only fan-favorite Ford vehicle receiving upcoming love as the automaker plans to keep adding new Mustangs, including a glimpse of a four-door variant it showed dealers in a bit of an unusual move for the company that doesn't overly share details of upcoming products.

Portfolio refresh

The Bronco and Mustang expansion is a part of a bigger plan. Ford is planning to refresh 80% of its North American portfolio by 2029 – fresher product sells better and requires less margin-eroding incentives to do so.

Perhaps the most intriguing part of its plan is to attack the vehicle affordability crisis as average new vehicle prices continue to hover around all-time highs, causing consumers to extend loan lengths and an uptick in repossessions nationally. Ford is planning a $25,000 hybrid crossover and will offer five vehicles under $40,000 by the end of the decade while also targeting half of its global volume to be hybrid, EV, or extended range by 2030.

The trick for Ford will be to lower costs enough, without hurting quality or removing value, to keep these more affordable vehicle sales profitable – it'll take some creativity. While the following statement is a little vague, it shows Ford understands the challenge: "I would say there's probably 10 actions that we'll do to help affordability," Andrew Frick, president of Ford Blue and Model e divisions, told Automotive News.

What it all means

Despite the renewed focus on gasoline and hybrid powertrains, including the developing Bronco sub-brand, Ford is still banking on its low-cost Universal Electric Vehicle platform to drive its future EV market share and profitability. The upcoming platform is expected to be the base of numerous vehicle models, including the recently named Fathom midsize electric truck due out next year.

Ford's upcoming product blitz is about more profitable fresh products, expansion of highly successful models, and even showing some love to its often overlooked luxury Lincoln lineup. Further, the focus on Bronco-based vehicles should come with strong margins, and the aspect of a Bronco pickup is tantalizing for investors.

The expansion of the Bronco is just part of a larger portfolio refresh that helps market share, assuming it can get its more affordable models out quickly before the demand flocks to the market's upcoming rival's more affordable options. Stellantis is one example of also planning a long list of affordable options in an effort to regain lost market share from years of struggling – the race is on.

Daniel Miller has positions in Ford Motor Company. The Motley Fool recommends Stellantis. The Motley Fool has a disclosure policy.